PANews reported on October 14th that, according to The Block, 0xBow, the team behind the crypto privacy project Privacy Pools, is launching new tools to help Tornado Cash users isolate their funds from illicit activity. A 0xBow representative stated that Tornado Cash's proof of association is the first viable mechanism that balances privacy protection with compliance, representing both progress and a practical model for innocent Tornado users. The new protocol utilizes schemes such as zero-knowledge proofs. Users provide a note and withdrawal address, and the system generates a proof that compares it to the deposit list to exclude illicit actors. If the funds are deemed "clean," the address is added to a public registry without revealing personal data. The system has currently blacklisted over 16,000 related addresses. Privacy Pools, launched earlier this year, utilizes the concept of "association set providers" to help whitelisted users deanonymize their ERC-20 tokens without having to inject funds into common protocols like Tornado Cash, which are used by illicit actors.PANews reported on October 14th that, according to The Block, 0xBow, the team behind the crypto privacy project Privacy Pools, is launching new tools to help Tornado Cash users isolate their funds from illicit activity. A 0xBow representative stated that Tornado Cash's proof of association is the first viable mechanism that balances privacy protection with compliance, representing both progress and a practical model for innocent Tornado users. The new protocol utilizes schemes such as zero-knowledge proofs. Users provide a note and withdrawal address, and the system generates a proof that compares it to the deposit list to exclude illicit actors. If the funds are deemed "clean," the address is added to a public registry without revealing personal data. The system has currently blacklisted over 16,000 related addresses. Privacy Pools, launched earlier this year, utilizes the concept of "association set providers" to help whitelisted users deanonymize their ERC-20 tokens without having to inject funds into common protocols like Tornado Cash, which are used by illicit actors.